Retirement Plan Loan Alternative

Many retirement plan participants may already know about the option to take out a loan against their retirement account. What you may not know about is the option to take out a hardship (though, all plans may not offer the option). A hardship, as defined by the Internal Revenue Service (“IRS”), “must be made on …

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Establishing that Debt is Bona Fide Debt

Recently, there have been a number of cases disallowing bad debt deductions, particularly for loans to shareholders and related parties. If a related party loan becomes worthless, it is treated no differently from a debt to an unrelated party. Of course, this assumes the related party loan meets the bona fide debt standard. In order …

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Being Aware of Your Debt Covenants

When companies are approved for a bank loan or line of credit, the loan agreement often contains certain affirmative and negative debt covenants. Debt covenants are conditions that the borrower must comply with in order to adhere to the terms of the loan agreement. Essentially, debt covenants bind a business to specific types of behavior …

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401(K) Expenses

Have you ever wondered how much in fees is being deducted from your 401k account? There are several types of fees that can be deducted from your 401(k) account including the following: Loan processing fees – a one time fee deducted for borrowing money from your account. Loan maintenance fees – a periodic fee charged for …

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Increase Participation in your 401(k) Plan

Is participation in your 401(k) plan still down? Some ways you can increase participation in your plan include identifying and overcoming the common objections and simplifying enrollment. Two of the most common objections for not participating that you will encounter as a plan administrator are that employees cannot afford to defer their income and that …

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Fraud in a 401k Plan?

Some people think that 401k plans have little exposure to fraudulent activity.  The truth is, whenever there is an incentive, the opportunity, and the rationalization to commit fraud, then fraud should definitely be considered by your Company. The following risks, and mitigating recommendations, will be helpful to the following persons (but not limited to1): • Director …

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